Australian shares broke a six-day winning streak Wednesday as higher-than-expected domestic CPI data damped hope of further interest rate cuts from the Reserve Bank of Australia, and regional shares suffered from concern about bad loans in China. Financial stocks bore the brunt of the pullback, and AGL Energy suffered from a profit warning. BHP Billiton remained strong.
While the local bourse initially benefited from expectations of sustained U.S. monetary stimulus after a disappointing U.S. non-farm payrolls report on Tuesday, it reversed course Wednesday after the CPI data exceeded expectations.
“I’ve been in the camp of no more interest rate cuts for some time, mainly due to the strength in the property market,” says Justin Gallagher, Sydney-based head of sales trading at CIMB. “I think the CPI data puts rate cuts completely out of the picture until the new year and even then it will be unlikely baring an international crisis.”
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Latest posts by marketpulsefxstaff (see all)
- Oil Remains Near Multi-Month Lows - 6 August 2015
- U.S. Dollar Higher on Recent Data - 6 August 2015
- Greece’s PM Tsipras: Loan Deal with Lenders Close - 6 August 2015